[DK Goel] Q. 19, 20 Issue of Debentures Solutions Class 12 CBSE (2026-27)

Here are the solution of question number 19 and 20 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2026-27).

Q. 19. India. Ltd. made the following issue of 6% debentures:

(i) For cash at 90%, 6,000 debentures of ₹ 100 each.

(ii) 1,100 debentures of ₹ 100 each to a creditor regarding machinery costing ₹ 1,00,000.

(iii) To bank for a loan of ₹ 7,00,000 as collateral security 10,000 debentures of ₹ 100 each.

Pass Journal entries for first year only. All capital losses are to be written off in the first year itself.

Solution:-

Q. 20. X Ltd. issued 25,000, 9% Debentures of ₹ 100 each at a premium of ₹ 4 per debenture on 1st April, 2022. On the same date it purchased Property, Plant and Equipment of ₹ 10,00,000 and took over current liabilities of ₹ 70,000 of Y Ltd. and paid ₹ 4,00,000 in cash and remaining by issue of 5,00,000, 9% debentures at a premium 6%. On the same date it took a loan from the Bank for ₹ 6,00,000 and issued 9% debentures as collateral security. Give entries and the extract of Balance Sheet on 31st March, 2023. Ignore Interest.

[Ans Securities Premium ₹ 1,30,000.]

Solution:-